GROWTH Street has revealed details of its Innovative Finance ISA (IFISA) ahead of its imminent launch.
The peer-to-peer business lender said that its tax wrapper will offer a fixed rate of 5.8 per cent with a one-year term.
It will be a flexible ISA, meaning that investors can withdraw their money and put it back in again within the same tax year. Investors can also transfer previous years’ ISAs into the Growth Street ISA.
Growth Street said that early withdrawals are available after the ISA has been opened for at least three months, subject to liquidity and the firm’s discretion. Investors need to give 30 days’ notice and there is a one per cent early withdrawal fee.
The firm told customers via email that they only have “a few more weeks to wait” until its IFISA is available.
At a recent investor event in London, Growth Street chief executive Greg Carter (pictured) told Peer2Peer Finance News that the platform had been seeking customer feedback ahead of a second-quarter IFISA launch.
“The platform isn’t expecting major inflows when it launches as most funds typically come in nearer the end of the tax year, but investors just want to know that it is available,” he said.
“Many will also want to drip feed into it throughout the tax year.”